Inventories revised downwards in US-report
2022.12.09 10:46
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Inventories revised downwards in US-report
Budrigannews.com – In October, wholesale inventories in the United States increased less than initially anticipated, indicating that businesses were prudently managing their inventory in the face of slowing demand.
Friday, the Commerce Department reported that wholesale inventories increased by 0.5 percent rather than the 0.8% reported the previous month. In September, wholesaler stock prices went up 0.6 percent.
Reuters polled economists anticipated that inventories would not be revised. October saw a year-over-year increase of 21.9 percent in wholesale inventories.
Inventories are a vital piece of GDP. Furniture, computer, and professional equipment stocks decreased. After increasing by 1.4% in September, wholesale vehicle inventories remained unchanged.
In October, wholesale inventories, excluding autos, increased by 0.6%. GDP is calculated using this component.
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Inventories have been a drag on Gross domestic product for two straight quarters, deducting very nearly one rate point in the second from last quarter. After contracting during the first half of the year, the economy expanded in the final quarter at an annualized rate of 2.9%.
As the Federal Reserve aggressively raises interest rates to combat inflation, inventory accumulation has decelerated significantly from the robust pace in late 2021 and early 2022. This decline is in part due to a decrease in consumer demand for goods.
After increasing by 1% in September, wholesaler sales increased by 0.4 percent in October. Wholesalers would need 1.32 months to clear shelves at October’s sales pace, which is the same as September.
